EBITDA of R$ 249 million in 1Q11, with EBITDA margin of 26%

Klabins consolidated financial statements are presented in accordance with International Financial Reporting Standards (IFRS), as determined by CVM Instructions 457/07 and 485/10. Data for prior periods were adjusted for comparison purposes.
R$ million Sales volume - 1,000 t
% Domestic Market

1Q11 438
61%

4Q10 417
68%

1Q10 433
62%

1Q11/4Q10

1Q11/1Q10

5%
-7 p.p.

1%
-1 p.p.

Net revenue
% Domestic Market

957
74%

931
78%

844
75%

3%
-4 p.p.

13%
-1 p.p.

Operational Result (EBIT) EBITDA

EBITDA Margin

203 249
26%

315 231
25%

148 242
29%

-36% 8%
1 p.p.

37% 3%
-3 p.p.

Net Income Net Debt

Net Debt / EBITDA (LTM)

140 2,002
2.1 x

225 2,128
2.2 x

42 2,528
3.1 x

-38% -6% -16%

237% -21% 153%

Capex
LTM - last twelve months N/A - Non applicable

115

138

46

Note: Due to rounding, some figures in tables and graphs may not result in a precise sum.

1Q11 Highlights
Sales volume: 438 thousand tonnes, up 1% from 1Q10; Net revenue: R$ 957 million, up 13% from 1Q10; Net revenue from domestic sales: R$ 711 million, up 13% from 1Q10; Net revenue from exports: R$ 246 million, up 14% over 1Q10; Solid cash position: investments reach R$ 2.6 billion; Net debt down R$ 125 million from December 2010, ending the period at R$ 2.0 billion; Net debt/EBITDA ratio falls from 3.1x in March 2010 to 2.1x in March 2011; Net income: R$ 140 million in 1Q11, versus R$ 42 million in 1Q10.

Investor relations Antonio Sergio Alfano Luiz Marciano Vinicius Campos Daniel Rosolen Lucia Reis +55 11 3046-8401

Conference call Portuguese Friday, 04/29/11 9am (EDT) Phone: +55 11 4688-6331 Password: Klabin Replay: +55 11 46886312 Password: 1504511 English Friday, 04/29/11 10am (EDT) Phone US: 1-888-700-0802 Password: Klabin Replay: +55 11 46886312 Password: 1435076

1Q11 Results April 28th, 2011

1Q11 Summary
Klabin, Brazils largest paper producer, exporter and recycler and the leader in the paper, coated board for packaging, corrugated boxes, industrial bags and logs for sawmills and planer mills markets, closed 1Q11 with EBITDA (earnings before interest, tax, depreciation and amortization) of R$ 249 million, accompanied by EBITDA margin of 26%, for EBITDA growth of 3% and 8% from 1Q10 and 4Q10, respectively. In the first quarter, Klabins net income totaled R$ 140 million, boosted by the financial income in the period, given the appreciation in the Brazilian real, compared to a R$ 42 million result in first quarter of 2010,.
500 450 400 350 300 250 200 150 19% 100 50 0 17% 15%

EBITDA and EBITDA margin

(R$ million)
26% 25% 249 231 29% 242

31% 29% 27% 25% 23%

Net income
(R$ milliion)
225 140

21%

42

1Q11

4Q10

1Q10

1Q11

4Q10

1Q10

Sales volume, excluding wood, reached 438 thousand tonnes in the first quarter, up 1% from 1Q10 and 5% from 4Q10, mainly reflecting the higher volumes from sales of kraftliner and coated boards, which jointly accounted for 64% of 1Q11 total sales. At the close of March 2011, the Companys net revenue amounted to R$ 957 million, up 13% and 3% from 1Q10 and 4Q10, respectively. The domestic market accounted for 74% of total net revenue, corresponding to R$ 711 million. This figure represents growth of 13% from 1Q10 and a reduction of 3% from 4Q10. Exports, on the other hand, grew significantly in the first three months of 2011, accounting for R$ 246 million of the periods consolidated net revenue, up 15% from 1Q10 and 23% from 4Q10.
Sales volume excluding wood
(tsd tonnes)
438 EM 169 957 417 133 433 EM 165 711 730 246

Net revenue
(R$ million)
931 201 844 215

DM

269

283

269

DM

630

1Q11

4Q10

1Q10

1Q11

4Q10

1Q10

Klabins ended the period with a strong cash position, with cash and cash equivalents totaling R$ 2.6 billion on March 31, 2011, for growth of approximately R$ 300 million from 1Q10 and a reduction of R$ 91 million from December 2010. This amount is equivalent to 3.1x the volume of short-term gross debt. Net debt stood at R$ 2,003 million on March 31, 2011, for a reduction of R$ 125 million from December 2010. The net debt/EBITDA ratio fell from 3.1x in March 2010 to 2.1x at the close of 1Q11. In the first quarter, Klabins Board of Directors elected Mr. Fabio Schvartsman as the Companys new CEO, due to the retirement of Mr. Reinoldo Poernbacher.

2 2

1Q11 Results April 28th, 2011

Markets and Exchange Rate

Inflation has once again become a cause for concern in recent months, fueled by the hikes in oil prices, which were partially due to the recent restrictions of a geopolitical nature. The price pressures were especially intense in emerging economies, whose main challenge at the moment is to moderate the pace of economic growth. In response to inflationary pressures, some countries have initiated monetary tightening cycles, with hikes in basic interest rates and the adoption of macroprudential measures. In developed economies, factors such weak job markets, high public-sector debt and the effects of the earthquake and tsunami in Japan have imposed greater restrictions on sustainable economic growth. In general, the international scenario continues to be marked by abundant liquidity, low risk aversion and high commodity prices. Similar to the scenario in other countries around the world, Brazils economy was equally marked by higher inflation in the first quarter, pressured mainly by food and commodity prices. The move by Brazil's central bank to hike the basic interest rate contributed to the appreciation in the Brazilian real against the U.S. dollar, reducing the competitiveness of Brazilian goods abroad. Brazilian demand for paper, which traditionally is weaker in the first quarter, contributed to the higher exports. International sales of kraftliner remained at high levels. In Europe, according to data published by FOEX, the list price of kraftliner brown 175 g/m was above 600/t in January. In 1Q11, the average price of kraftliner increased by 39% from 1Q10 and by 2% from 4Q10. Domestic sales of coated board declined in the first three months of 2011, in line with the low seasonality of the quarter. According to the Brazilian Association of Pulp and Paper Producers (Bracelpa), Brazilian shipments of coated board, excluding liquid packaging board, reached 119 thousand tonnes in 1Q11, down 13% from the same period in 2010, when the market posted significant growth, due to the recovery following the financial crisis. Klabins share of the coated board domestic market remained flat at 27%. However, the increase in sales of coated board for liquid packaging partially offset the reduction in folding box and carrier boards. Old corrugated container (O.C.C.) prices declined from the previous quarter, recovering to 1Q10 levels. The Brazilian corrugated boxes market remained stable in the first quarter of 2011. According to data from the Brazilian Corrugated boxes Association (ABPO), Brazilian shipments of boxes and sheets reached 605 thousand tonnes from January through March, up 1% on the previous year. In March, daily shipments averaged 10 thousand tonnes, up 3% from the daily average per business day in February 2011 and March 2010. Preliminary data from the National Cement Industry Trade Union (SNIC), which include bulk and bags cement, indicate that consolidated cement sales in the quarter grew by 7% in relation to 1Q10. In 1Q11, the strongest growth in relation to 1Q10 was observed in the country's North and South regions, which registered increases of 19% and 12%, respectively. The two regions together accounted for 21% of Brazils cement consumption. Brazil's construction industry was also robust in early 2011 and helped fuel domestic wood sales. Klabin's domestic wood sales volume grew by 8% from 1Q10. The foreign exchange rate (sell, end of period), which closed at R$ 1.67/US$ on December 31, 2010, fell by 2% in the year to R$ 1.63/US$ at the end of March 2011. The average foreign exchange rate was R$ 1.67/US$ in 1Q11, down 7% and 2% from 1Q10 and 4Q10, respectively.

1Q11 Average Rate End Rate 1,67 1,63

4Q11 1,70 1,67

1Q10 1,80 1,78

1Q11/4Q10

1Q11/1Q10

-2% -2%

-7% -9%

3 3

1Q11 Results April 28th, 2011

Operating and financial performance

Sales volume
Sales volume, excluding wood, was 438 thousand tonnes in 1Q11, increasing by 1% from 1Q10 and by 5% from 4Q10, driven by the higher sales of kraftliner and boards. Domestic sales volume came to 269 thousand tonnes, remaining stable from 1Q10 and declining by 5% from 4Q10, reflecting the lower domestic demand that affected the coated boards, corrugated boxes and from deconcentration in industrial bags sales in order to meet better margin segments. Export sales volume in the quarter totaled 169 thousand tonnes, growing by 3% from 1Q10 and 27% from 4Q10, due to the higher export volume of coated boards.
Sales Volume (thousand tonnes)

Sales volume by product 1Q11

Ind. Bags 8% Others 1%

438
39%

417
32%

433
38%

Kraftliner 25%

Coated Boards 38%

61%

68%

62%

1Q11

4Q10

1Q10
Export Market
does not include wood

Corrugat. Boxes 28%

Domestic Market

Net Revenue
Net revenue in 1Q11, including wood, totaled R$ 957 million, up 13% from 1Q10 and 3% from 4Q10, reflecting the higher sales volume.

Net Revenue (R$ million)

Net Revenue by Product 1Q11

Wood Others 7% 1%

957
26%

931
22%

844
25%

Ind bags 12%

Coated Boards 35%

74%

78% 75%

Kraftliner 15%

1Q11
Domestic Market

4Q10

1Q10
Export Market

includes wood

Corrugat. Boxes 30%

4 4

1Q11 Results April 28th, 2011

Net revenue in the domestic market was R$ 711 million, 13% higher than in 1Q10 and 3% lower than in 4Q10. Export revenue in 1Q11 totaled R$ 246 million, for growth of 14% from 1Q10 and 23% from 4Q10, driven by the higher sales volume in the period. Exports Despite the lower exchange rate in the period, Klabins export revenue grew in comparison with the first quarter of 2010, due to higher prices in the foreign market and the product mix. In view of the stability in domestic demand already expected for the first quarter of the year, the Company increased the volume of sales allocated to exports, concentrating volumes in regions that are closer to Brazil. Latin America continues to be Klabins most important export market, accounting for 44% and 43% of the Companys 1Q11 sales volume and net revenue, respectively, followed by Asia, which concentrates its exports of board for liquid packaging.

Sales Volume - 1Q11 169 thousand tonnes

North Afric a America 4% 7%

Net Revenue - 1Q11 R$ 246 million

North America 6% Africa 5%

Europe 17%

Latin America 44%

Europe 17%

Latin Americ a 43%

Asia 28%

Asia 29%

Operational Costs and Expenses

Cost of goods sold (COGS) totaled R$ 711 million in the first quarter, up 7% from 1Q10 and 20% from 4Q10, due to depletion of the biological assets in the quarter. Excluding the depletion effects on the fair value of biological assets, COGS reached R$ 626 million in 1Q11, remaining flat in relation to 4Q10 and increasing by 15% from 1Q10. Selling expenses totaled R$ 86 million in 1Q11, expanding by 18% and 11% from 1Q10 and 4Q10, respectively. The increase is explained by the increase in freight charges due to the higher export volumes and non-recurring expenses. In the first quarter of the year, freight costs reached R$ 47 million, equivalent to 54% of total selling expenses. General and administrative expenses totaled R$ 55 million, up 21% from 1Q10, influenced mainly by the non-recurring items and collective payment agreement, and contracted by 2% from 4Q10. Unit cash cost in the quarter was R$ 1,595 per ton, including fixed and variable costs and selling and administrative expenses, for an increase of 15% from 1Q10 and remaining flat from the previous quarter. The increase in relation to 1Q10 was influenced by the wage increase, the harvesting of timber and chemical products. Other operating revenue (expenses) was an expense of R$ 9 million due to non-recurring items, versus revenue of R$ 0.5 million in 1Q10 and an expense of R$ 38 million in 4Q10.

5 5

1Q11 Results April 28th, 2011

Operating income before the financial result (EBIT) was R$ 203 million in the quarter, up 37% from 1Q10, and down 36% from 4Q10.

Operating cash flow (EBITDA)

Operating cash flow (EBITDA) was R$ 249 million in the first quarter, increasing by 3% and 8% from 1Q10 and 4Q10, respectively. EBITDA margin stood at 26%, versus 29% in 1Q10 and 25% in 4Q10.

EBITDA Composition R$ million Operational result (after financial result) (+) Financial result (+) Depreciation, amortization, depletion (-) Biological assets adjust EBITDA EBITDA Margin
N / A - Not applicable

1Q11 237 (34) 154 (108) 249 26%

4Q10 348 (33) 64 (148) 231 25%

1Q10 68 81 181 (88) 242 29%

1Q11/4Q10

1Q11/1Q10

-32% 3% 141% -27% 8% 1 p.p.

412% -141% -65% 68% 3% -3 p.p.

Indebtedness and financial investments

Gross debt stood at R$ 4,641 million on March 31, 2011, compared with R$ 4,857 million on December 31, 2010, of which R$ 2,714 million (58%) was denominated in foreign currency (primarily extrude finance). The average debt term stood at 39 months, or 32 months for debt denominated in local currency and 44 months for debt denominated in foreign currency. At the end of March, short-term debt accounted for 18% of total debt. The average debt cost stood at 8.1% p.a. in local currency and 3.6% p.a. in foreign currency. At the close of March, cash and cash equivalents totaled R$ 2,638 million, representing a reduction of R$ 91 million from December 2010 and corresponding to 3.1x the volume of short-term gross debt. Net debt stood at R$ 2,003 million on March 31, 2011, a reduction of R$ 125 million from the R$ 2,128 million on December 2010. The net debt/EBITDA ratio, which stood at 2.2x at the end of December 2010, ended March 2011 at 2.1x.
Debt (R$ million) Short term
Local currency Foreign currency

03/31/11 848
506 342

12/31/10 842
496 346

18% 11% 7% 82% 31% 51% 100% 42% 58%

17% 10% 7% 83% 31% 52% 100% 41% 59%

Long term
Local currency Foreign currency

3,793
1,421 2,372

4,015
1,506 2,509

Gross debt
Local currency total Foreign currency total

4,641
1,927 2,714

4,857
2,002 2,855

(-) Cash Net debt Net debt / EBITDA

2,638 2,003 2.1 x

2,729 2,128 2.2 x

6 6

1Q11 Results April 28th, 2011

Financial Result
The net financial result was financial income of R$ 34 million, versus R$ 33 million in 41Q10. The result is explained by the financial expenses of R$ 94 million, which were more than offset by the financial income of R$ 69 million and exchange translation gain of R$ 59 million, given the 2% drop in the exchange rate.

Net Income
Net income was R$ 140 million in 1Q11, versus R$ 42 million in 1Q10 and R$ 225 million in 4Q10. In addition to the factors mentioned earlier, 1Q11 net income was positively impacted by the variation of R$ 108 million in biological assets and negatively impacted by the depletion at fair value of biological assets of R$ 85 million.

Business Performance
Consolidated information by operational segment
Consolidation adjustments

R$ million Net revenue

Domestic market Exports

Forestry

Papers

Conversion

Total

74 -

254 225

383 21

711 246

Third part revenue

Segments revenue

74
120

479
203

404
4

(327)

957
-

Total net revenue

Change in fair value - biological assets Cost of goods sold

194
107 (213)

682
(501)

408
(323)

(327)
326

957
107 (711)

Gross income
Operating expenses

88
(16)

181
(82)

85
(48)

(1)
(4)

353
(150)

Operating results before financial results

72

99

37

(5)

203

Note: The figures in the table for total net sales include sales of other products.

FORESTRY
In 1Q11, the volume of wood sales to third parties totaled 737 thousand tonnes, up 8% from 1Q10 and down 3% from 4Q10. The lower sales in relation to 4Q10 were basically due to the heavy rains in the period.
Sales Volume (thousand tons) 737 761 682 68 Net Revenue (R$ million)

66 53

1Q11

4Q10

1Q10

1Q11

4Q10

1Q10

7 7

1Q11 Results April 28th, 2011

Net revenue from log sales to third parties in 1Q11 came to R$ 68 million, up 27% and 3% from 1Q10 and 4Q10, respectively. In March, own and third-party planted areas totaled 211,000 hectares, of which 133,000 hectares were planted with pine and 78,000 hectares with eucalyptus. In addition to its planted areas, Klabin has 193,000 hectares of permanent preservation and legal reserve areas.

PAPER
The volume of paper and coated board sales to third parties totaled 279 thousand tonnes in 1Q11, up 13% and 2% from 1Q10 and 4Q10, respectively. Exports in the quarter totaled 162 thousand tonnes, growing by 29% and 4% in relation to 1Q10 and 4Q10, respectively. Net revenue from paper and board sales totaled R$ 473 million in 1Q11, up 10% from 1Q10 and 12% from 4Q10.

Kraftliner
Kraftliner sales volume was 111 thousand tonnes in 1Q11, increasing by 1% and 26% from 1Q10 and 4Q10, respectively. Kraftliner exports stood at 79 thousand tonnes in the quarter, representing 71% of total sales of this product. Domestic kraftliner sales reached 32 thousand tonnes in 1Q11, increasing by 12% and 10% in relation to 1Q10 and 4Q10, respectively. Kraftliner net revenue amounted to R$ 141 million in the first quarter, up 20% and 14% from 1Q10 and 4Q10, respectively.
Sales Volume (thousand tonnes) 111 88
71% 67% 74%

Net Revenue (R$ million) 110 141 124 117

29%

33%

26%

1Q11

4Q10

1Q10
Exports

1Q11

4Q10

1Q10

Domestic Market

According to FOEX, the average list price in USD of kraftliner brown 175g/m2 in Europe rose 2% in both euro and dollar terms in 1Q11, reaching US$824 per metric ton.

8 8

1Q11 Results April 28th, 2011

Kraftliner brown 175 g/m list price (/tonne and R$/tonne)

1.459 1.344 1.302 1.217

1.392 1.162 1.029 1.038 1.079 1.207 1.089

1.364

1.373

516

501

487

486

462

411

385

404

433

478

533

592

602

1T08

2T08

3T08

4T08

1T09

2T09

3T09

4T09

1T10

2T10

3T10

4T10

1T11

Source: FOEX e BAC EN

Quarter average

Kraftliner ( / tonne)

Kraftliner (R$ / tonne)

Coated Board
In 1Q11, coated board sales volume totaled 168 thousand tonnes, growing by 3% from 1Q10 and 7% from 4Q10. Domestic sales volume stood at 84 thousand tonnes, contracting by 3% and 7% from 1Q10 and 4Q10, respectively. Coated board exports totaled 79 thousand tonnes in 1Q11, 3% lower than in 1Q10 and 33% higher than in 4Q10.
Sales Volume (thousand tonnes) 168 158 163 332 306
50% 43% 47%

Net Revenue (R$ milion)

304

50%

57%

53%

1Q11

4Q10

1Q10
Exports

1Q11

4Q10

1Q10

Domestic Market

According to data from the Brazilian Association of Pulp and Paper Producers (Bracelpa), coated board sales volume in the domestic market, excluding liquid packaging board, totaled 119 thousand tonnes in 1Q11, down 13% from 1Q10. However, the increase in sales of coated board for liquid packaging partially offset the reduction in folding box and carrier boards.

9 9

1Q11 Results April 28th, 2011 CONVERSION

Sales volume from converted products was 153 thousand tonnes in 1Q11, up 1% from 1Q10 and down 4% from 4Q10. Net revenue from converted products totaled R$ 404 million, up 13% from 1Q10 and down 4% from 4Q10.

Corrugated boxes
Shipments of corrugated boxes totaled 121 thousand tonnes in 1Q11, up 1% from 1Q10 and down 4% from 4Q10.
Sales Volume (thousand tonnes) 126 Net Revenue (R$ million)

121

119

288

304 249

1Q11

4Q10

1Q10

1Q11

4Q10

1Q10

Net revenue totaled R$ 288 million in 1Q11, up 16% from 1Q10 and down 5% from 4Q10. According to the Brazilian Corrugated Boxes Association (ABPO), corrugated box and sheets shipments in the quarter totaled 605 thousand tonnes, expanding 1% from 1Q10.

Brazilian Corrugated Shipments thousand tonnes

216 209 197 181 197 184 168 183 198 201 218 202 214

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

Quarter average

Monthly volume

10 10

1Q11 Results April 28th, 2011 Industrial Bags

Domestic and international sales volume of industrial bags in Brazil and Argentina totaled 33 thousand tonnes in 1Q11, down 2% from 1Q10 and 3% from 4Q10. Net revenue from industrial bags sales was R$ 116 million in 1Q11, increasing 7% from 1Q10 and remaining stable in relation to 4Q10.
Sales Volume (thousand tonnes) Net Revenue (R$ million)

116 33 34 33

116

109

1Q11

4Q10

1Q10

1Q11

4Q10

1Q10

Preliminary data from the National Cement Industry Union (SNIC) and market estimates indicate that domestic cement sales totaled 14 million metric tons in 1Q11, an increase of 7% from 1Q10 and a reduction of 4% from 4Q10. During the first quarter the Company was selective in industrial bags sales, aiming better mix and better margin segments.

Brazilian cement consumption million tons

5,3 4,7 3,9 4,2 4,3 3,9 4,1 4,6 4,4 4,5 4,7 5,0 4,8

1Q08

2Q08

3Q08

4Q08 1Q09 2Q09 Quarter average

3Q09

4Q09 1Q10 2Q10 Monthly consumption

3Q10

4Q10

1Q11

Source: Nation Labor Union of C ement Industry

Capital Expenditure
Capex came to R$ 115 million in 1Q11, of which 64% was allocated to the Paper Business Unit, 32% to the Forestry Business Unit and 4% to the Conversion Unit. These figures are shown in the chart below:

11 11

1Q11 Results April 28th, 2011

R$ million Forestry Papers Conversion Others Total 115 1Q11 37 74 4 46 1T10 26 13 7

Klabin continues to invest to improve its energy matrix. In January 2011, the biomass boilers at the Otaclio Costa plant in Santa Catarina began operations, with satisfactory initial results in terms of the reduction in fuel oil consumption. The evaporation system of this industrial unit is currently being refurbished. The new biomass boiler at the plant in Correia Pinto, Santa Catarina continues to be expected to start operations in early 2Q12. The Companys corrugated boxes units received investments of approximately R$ 100 million, which was allocated to the installation of new corrugators at the plants in Goiana, Pernambuco and in JundiaDI, So Paulo. The industrial bags unit received a complete new line for the production of valve bags, which will be installed at the plant in Lages, Santa Catarina.

Capital Markets
Stock Performance
March 31st, 2011 Preferred shares Share price (KLBN4) Book value Average daily trading volume 1Q11 Market capitalization 600.9 million R$ 6.60 R$ 5.59 R$ 13.0 million R$ 5.8 billion

In 1Q11, the price of Klabin's preferred shares (KLBN4) gained 13%, while the Bovespa index declined by 1%. In the last 12 months, Klabins preferred shares (KLBN4) gained 37%, compared to 2% increase of the Bovespa index.
Performance KLBN4 x Brazilian Index (Ibovespa)

137

100

102

Mar10

Nov10

May10

Dec10

Sep10

Aug10

Klabin

Oct10

Ibovespa Index

12 12

Mar11

Apr10

Jul10

Jan11

Jun10

Feb11

1Q11 Results April 28th, 2011

Klabin stock was traded in all sessions on the BM&FBovespa, registering 146,553 transactions that involved 135 million shares, for average daily trading volume of R$ 13 million, 46% higher than in the previous quarter.
Average Daily Volume (R$ million/day)
22

17 15 14 12 9 6 4 6 7 9 9 10 9 9 8 9 10 8 7 12 14 14 13 12

Jun09

Aug09

Jun10

Apr09

Apr10

Aug10

Jul09

Jan10

Jul10

Mar09

Mar10

Jan11

May09

May10

Sep09

Sep10

Nov09

Klabin stock also trades in the U.S. market through Level I ADRs, which are listed on the over-thecounter market under the ticker KLBAY. Klabins capital is represented by 917.7 million shares, composed of 316.8 million common shares and 600.9 million preferred shares. Until March 31st, 2011, Klabin had 27.2 million preferred shares in treasury.

Dividends
The Annual Shareholders Meeting held on April 4, 2011 approved the payment of complementary dividends for fiscal year 2010 of R$ 73.85 per lot of thousand common shares and R$ 81.24 per lot of thousand preferred shares. As a result, the dividends distributed relative to fiscal year 2010 will total R$ 190 million.

Sale of preferred shares by BNDESPAR

During the second half of 2010, BNDESPAR began selling in the market the Klabin preferred shares (KLBN4) it held. By January 11, 2011, BNDESPAR had sold 80 million preferred shares in Klabin, which led its interest in the Companys preferred shares to fall from 31% to 18%.

Change in executive board

In a meeting of the Board of Directors held on February 2, 2011, Mr. Fbio Schvartsman was elected the chief executive officer of Klabin, replacing Mr. Reinoldo Poernbacher, who had stepped down to retire.

13 13

Nov10

Mar11

Dec09

Dec10

Feb10

Feb11

Oct09

Oct10

1Q11 Results April 28th, 2011

Conference Call
Friday, April 29, 2011 at 10:00 a.m. (Braslia). Code: Klabin Dial-in: +55 (11) 4688-6331 Replay: +55 (11) 46886312 Code: 1504511 Conference Call Friday, April 29, 2011 at 9:00 a.m. (Eastern time). Code: Klabin Dial-in: U.S. participants: 1-888-700-0802 International participants: 1-786-924-6977 Brazilian participants: +55 (11) 4688-6331 Replay: +55 (11) 46886312 Code: 1435076 Webcast An audio webcast of the conference call will also be available on the internet. The conference call will also be broadcast over the internet. Access: www.ccall.com.br/klabin

With gross revenue of R$ 4.4 billion in 2010, Klabin is the largest integrated manufacturer of packaging paper in Brazil, with annual production capacity of 1.9 million metric tons. Klabin has adopted a strategic focus on the following businesses: paper and coated board for packaging, corrugated boxes, industrial bagss and wood. Klabin is the leader in all its market segments.
The statements made in this earnings release concerning the Company's business prospects, projected operating and financial results and potential growth are merely projections and were based on Managements expectations regarding the Companys future. These expectations are highly susceptible to changes in the market, in the state of the Brazilian economy, in the industry and in international markets, and therefore are subject to change.

14 14

1Q11 Results April 28th, 2011

Appendix 1 Consolidated Income Statement (R$ thousand)

1Q11
Gross Revenue Net Revenue Change in fair value - biological assets Cost of Products Sold Gross Profit Selling Expenses General & Administrative Expenses Other Revenues (Expenses) Total Operating Expenses Operating Income (before Fin. Results) Financial Expenses Financial Revenues Net Foreign Exchange Losses Net Financial Revenues Net Income before Taxes Income Tax and Soc. Contrib. Minority Interest Net Income Depreciation/Amortization/Exhaustion Change in fair value - biological assets EBITDA

4Q10

1Q10

% of Net revenue

1Q11

4Q10

1Q10

1,144,430 957,005 107,807 (711,334) 353,478 (85,750) (55,341) (9,124) (150,215) 203,263 (93,923) 68,753 58,728 33,558 236,821 (87,842) (8,777) 140,202 153,894 (107,807) 249,350

1,125,347 930,940 147,612 (591,580) 486,972 (77,435) (56,542) (37,656) (171,633) 315,339 (76,722) 66,695 43,010 32,983 348,322 (114,063) (9,117) 225,142 63,599 (147,612) 231,326

1,022,474 844,385 87,523 (665,405) 266,503 (72,565) (45,934) 465 (118,034) 148,469 (81,755) 42,449 (41,280) (80,586) 67,883 (23,010) (3,290) 41,583 181,133 (87,523) 242,079 26.1% 24.8% 28.7% 74.3% 36.9% 9.0% 5.8% 1.0% 15.7% 21.2% 9.8% 7.2% 6.1% 3.5% 24.7% 9.2% 0.9% 14.7% 16.1% 63.5% 52.3% 8.3% 6.1% 4.0% 18.4% 33.9% 8.2% 7.2% 4.6% 3.5% 37.4% 12.3% 1.0% 24.2% 6.8% 78.8% 31.6% 8.6% 5.4% 0.1% 14.0% 17.6% 9.7% 5.0% 4.9% 9.5% 8.0% 2.7% 0.4% 4.9% 21.5% 100.0% 100.0% 100.0%

15

1Q11 Results April 28th, 2011

Appendix 2 Consolidated Balance Sheet (R$ thousand)

Asset
Current Assets Cash and banks Short-term investments Securities Receivables Inventories Recoverble taxes and contributions Other receivables

Mar-11
4.015.790 19.063 2.415.810 203.465 770.979 475.446 86.880 44.147

Dec-10
4.127.147 39.880 2.491.225 198.222 753.961 460.128 131.102 52.629

Liabilities and StockholdersEquity

Current Liabilities Loans and financing Suppliers Income tax and social contribution Taxes payable Salaries and payroll charges Dividends to pay Dividends to pay - minority Proviso REFIS Other accounts payable Noncurrent Liabilities Loans and financing

Mar-11
1.673.997 847.781 272.144 10.724 40.387 64.903 373.182 64.876 5.232.998 3.793.117 1.275.130 164.751 5.132.943 1.500.000 84.491 51.224 2.403.120 1.082.079 (128.353) 140.382 180.977 12.220.915

Dec-10
1.690.913 842.121 269.839 37.013 40.669 93.542 2.584 349.340 55.805 5.415.828 4.014.976 1.235.635 165.217 4.994.085 1.500.000 84.491 51.404 2.365.900 1.120.643 (128.353) 160.417 12.261.243

Noncurrent Assets

8.205.125

8.134.096

Deferred income tax and social contribution Other accounts payable Stockholders' Equity

Taxes to compensate Judicial Deposits Other receivables Other investments Property, plant & equipment, net Biological assets Intangible assets

132.915 91.989 127.431 11.542 5.026.761 2.806.819 7.668

131.621 90.698 125.678 11.542 5.004.023 2.762.879 7.655

Capital Capital reserves Revaluation reserve Profit reserve Valuation adjustments to shareholders' equity Treasury stock Accumulated Profits Minority Interests

Total

12.220.915

12.261.243

Total

16

1Q11 Results April 28th, 2011

Appendix 3 Loan Maturity Schedule March 31, 2010

R$ million BNDES Others Local Currency Trade Finance Fixed Assets Others Foreign Currency Gross Debt 2Q11 82 12 95 78 1 5 84 179
Average Cost Local Currency Foreign Currency Gross Debt 8.1 % p.y. 3.6 % p.y.

3Q11 84 0 84 55 1 25 80 165

4Q11 234 8 243 97 2 98 341

2012 322 17 338 391 6 43 440 778

2013 296 18 314 450 6 63 519 833

2014 289 21 310 330 5 61 395 706

2015 323 31 354 257 5 61 322 676

2016 57 25 82 100 3 118 221 303

2017 25 9 35 126 4 130 164

After 2018

Total 1.762 165 1.927 2.176 40 498 2.713 4.641

50 22 72 292 9 122 423 495

Average Tenor 32 months 44 months 39 months

R$ Million 833 778 706 676 Foreign Currency 2,713

440

519 395 322

495

341
98

303
423 338 314 310 354 221

Gross Debt 4,641

Local Currency 1,927
72
After 2018

179
84 95
2Q11

165
80 84
3Q11 4Q11

164
130

243

82
2012 2013 2014 2015 2016

35
2017

17

1Q11 Results April 28 th, 2011

Appendix 4 Consolidated Cash Flow (R$ thousand)

1Q11
Cash flow from operating activities Operating activities . Net income . Depreciation and amortization . Depletion in biological assets . Change in fair value - biolgical assets . Equity results . Deferred income taxes and social contribution . Income taxes and social contribution . Interest and exchange variation on loans and financing . Interest Payment . REFIS Reserve . Minority interest . Others Variations in Assets and Liabilities . Receivables . Inventories . Recoverable taxes . Securities . Prepaid expenses . Other receivables . Suppliers . Taxes and payable . Salaries, vacation and payroll charges . Other payables Net Cash Investing Activities . Purchase of property, plant and equipment . Purchase of biological assets . Increase in intangible . Sale of property, plant and equipment Net Cash Financing Activities . New loans and financing . Amortization of financing . Payment of capital at subsidiaries by minority shareholders . Acquisition of minority shares in subsidiaries . Stocks repurchase Increase (Decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (96.232) 2.531.105 2.434.873 305.838 1.841.652 2.147.490 1.876 (134.193) 1.336 (147.312) 12.507 (724) 151.564 135.964 140.202 57.890 96.004 (107.807) 2.457 37.125 (56.422) (2.903) (67.320) 23.842 8.777 4.119 15.600 (21.037) (15.318) 99.350 (5.243) 6.469 (1.077) 2.436 (26.571) (28.639) 5.230 (113.603) (83.342) (32.137) 113.359 (95.863) 2.551 3.290 (2.544) 67.329 (35.445) 4.226 76.375 21.452 3.024 (2.081) 27.975 23.911 (19.241) (32.867) (45.055) (23.499) (19.119) (3.013) 576 123.722 377.479 (259.423) 6.515 (849)

1Q10
227.171 159.842 41.583 54.217 126.916 (87.523) 238 3.618

18